Self storage project planned near Choto Road, in West Knoxville

A mixed-use development with multiple self storage buildings is on the agenda for this month’s MPC meeting.

According to an application, the project near the Choto Road-Northshore Drive roundabout would include a two-story commercial building, a veterinary clinic and a 40,500-square-foot self-service storage facility.

Developer John Huber said the total amount of storage may be reduced, and could eventually be closer to 30,000 or 35,000 square feet.

Huber said that while the traffic counts in that part of Northshore Drive may not be huge, he’s trying to capitalize on the captive audience for storage space.

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Greater Knoxville Business Journal turns a spotlight on self storage

This month’s edition of the Greater Knoxville Business Journal features a new columnist: me.

It’s a great opportunity to write about commercial real estate every month, but readers of this blog won’t be surprised to learn that my first column was about self storage, including the new multi-story projects in the pipeline and the potential challenges posed by technology.

 

Check it out here and, as always, call me at 865.777.3030 if you hear about new projects or deals in the works.

Memphis REIT to invest in Louisville, Ky., self storage project

Jernigan Capital, a Memphis-based REIT, this month announced plans for a large self storage project in Louisville, Ky.

Jernigan said it has closed a $9.9 million investment in the planned 725-unit, 74,172-square-foot facility. According to a news release, the project will be located on Bardstown Road, with construction expected to finish by the end of 2018. The project is slated to include two climate-controlled buildings.

Memphis-based Storage Development Partners LLC is the developer on the project. For more details, see the news release here.

American Self Storage Expands to Sweetwater, Tennessee

Loudon County-based American Self Storage has opened a new location in Sweetwater, with plans for an expansion in the works.

American opened a facility on New Highway 68, in Sweetwater, this July and has 100 units in operation, including 33 climate-controlled units. The company’s original location is on Gamble Street, in Loudon.

Owner Andy Hodges said they chose Sweetwater because of the high occupancy rates at existing facilities in the community, many of which did not have room to expand. American bought 9 acres on New Highway 68, and plans to open two additional buildings with a total of 70 units by Thanksgiving. They are also planning to add 25 covered spaces for boats and RVs.

“When it’s completely done, this property will be able to hold around 660 units,” Hodges said. “We’re just going to be building as they fill up.”

Hodges said that when the addition is opened in November, the company also plans to install a 40-foot flagpole and a large American flag, along with a plaque that pays tribute to fallen police officers.

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Three-story self-storage project approved on Northshore Drive, in Knoxville

Credit: Barry Byrd Architecture

Knoxville planners have approved a three-story self-storage facility on Northshore Drive.

Last month, the Metropolitan Planning Commission heard an application for the project, which would be located behind the Knoxville Cleaners building. According to the application, the climate-controlled storage facility would include a total of 103,512 square feet of space. The approval was granted on the condition that a landscape architect work with MPC on a plan to buffer the building on the front and back sides.

The 4-acre property on Northshore Drive has been listed for sale at a price of $1.25 million.

Knoxville has seen several climate-controlled self-storage facilities in the development pipeline in recent months. In July, a Memphis REIT announced it will invest $9.1 million in a proposed 758-unit self storage facility near West Town Mall.

Meanwhile, a group that includes Ed Campbell and Ed Drummond recently opened Climate Storage, a three-story facility at the intersection of Hardin Valley Road and the Pellissippi Parkway. The same group is currently developing another multi-story facility at Middlebrook Pike and Joe Hinton Road.

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Wine cellars and curb appeal

The Tennessean took the temperature of Nashville’s self-storage industry last week. The takeaway? While population growth and a strong economy have sparked a wave of development, new construction may have peaked.

“You saw record occupancy in the last year and two to where they were able to charge more,” said Alexander Harris, SpareFoot.com’s web editor. “Nationwide, the consensus is that 2017 is going to be the peak year for construction, then 2018 you’ll see a peak in completions. Nashville is actually a little bit earlier in the cycle, starting to pass its peak.”

For more information, including details about a firm that offers wine storage in its projects, read the full story here.

Dandridge self-storage expansion gaining momentum

Multi-story, climate-controlled storage facilities have been filling the development pipeline in Knoxville recently, but it’s not the only place in East Tennessee where that trend is taking root.

In Dandridge, Do-It Yourself Storage this spring opened its third building, a 221-unit structure near the intersection of I-40 and Highway 25-70. Each of DIY’s buildings has two stories, and the newest one includes two sets of stairs and two storage lifts. The buildings are unmanned, with customers able to rent units using an on-site kiosk or DIY’s website.

Owner Megan Maple said her competitors were initially skeptical about whether anyone would choose a second-floor unit, but she said those floors are full in her first two buildings, and they began renting second-floor units in the newest building last month.

“The second floor is $10 cheaper than the ground floor,” she said. “People rent on the second floor to save $10.”

Maple said her facility draws customers from a large region, including Newport, White Pine, Morristown and even Knoxville. While many of those renters don’t need climate-controlled space, she said DIY has kept prices low to fill the buildings up.

A number of multi-story, climate-controlled facilities are on the radar screen in East Tennessee. A Charlotte-based developer is planning a 758-unit facility near West Town Mall, in Knoxville, while a multi-story facility on Middlebrook Pike is currently under construction.

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Large Self Storage Facility Planned Near West Town Mall

By Josh Flory

A Memphis-based REIT announced this week that it will invest $9.1 million in a proposed 758-unit self storage facility near West Town Mall.

In a news release, Jernigan Capital said construction is expected to begin immediately and be finished in the second quarter of 2018. The developer is Charlotte-based Pamlico Investments LLC, and the facility will be managed by CubeSmart.

In April, the Metropolitan Planning Commission approved Pamlico’s plan for a four-story, 96,500-square-foot facility on a 1.3 acre tract at the intersection of Montvue Road and Interstate 40.

The new project is only the latest multi-story, climate-controlled self storage facility to hit the Knoxville market in recent months. A group that includes Ed Campbell and Ed Drummond recently opened Climate Storage, a three-story facility at the intersection of Hardin Valley Road and the Pellissippi Parkway. The same group is currently developing another facility at Middlebrook Pike and Joe Hinton Road.

Meanwhile, the conversion of a former furniture store on Parkside Drive, overlooking Interstate 40, was completed last year.

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NC self storage firm looks for acquisition opportunities

A Raleigh, N.C.-based firm has launched a fund that looks to acquire self storage facilities in the Southeast, and convert them to fully automated operations.

10 Federal said in a news release that it has begun fundraising for a $10 million fund that will target “Mom and Pop” facilities throughout the Southeast, particularly in North Carolina.

The company said it has acquired a self storage property called South Point, in Belmont, N.C., which is the first conversion acquisition for the new fund.

“South Point represented an ideal acquisition for the Fund,” Director of Acquisitions Kris Bennett said in the news release. “It was a ‘Mom & Pop’ operated facility with no website, no online advertising, a large property manager salary and rents that trailed the market.”

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